Where to start when stepping onto the property ladder.
When embarking on this journey it can be overwhelming and daunting. Here are a few points to help make things clear and get you started…
1. Start saving & understand what you need in order to be able to choose the property you can afford.
Calculate how much you can put aside each month. Set up a savings account & transfer what you can afford each month from your wages into the savings account so you’re not tempted to spend it.
To qualify for a mortgage, any provider will require you to have 10% of the purchase price saved as a first-time buyer. You can use the Help to Buy Scheme to use towards your deposit and this can supply up to €30,000 dependening on what you qualify for. See our information on the HTB scheme here… Keep in mind that your mortgage provide will still require you to have saved 10% of the property price regardelss of your HTB qualifying amount.
So, if you want to buy a house for €350,000, you’ll need to save €35,000. If you qualify for the full HTB amount of €30,000 then you will only need to use €5,000 of your savings to complete the deposit amount.
2. Cut your rent as much as you can.
Is it possible for you to reduce this? Can you move home with parents or share a house with friends?
Rent is probably your largest expense. It will go a long way towards your deposit if you can save it or a portion of it.
3. Use a budgeting app and review your monthly expenses
A lot of banking apps such as AIB mobile app, Revolut app or BOI mobile app will break down your monthly spending into categories such as ‘Leisure & Entertainment’, ‘Shopping’, ‘Bills & Utilities’ and ‘Travel & Holidays’. This can be really useful as you may be spending money on items that your so not even realise. Many banking apps will even allow you to set a savings goal and report on your progress towards that goal. You want to keep a social life and you’ll probably want to eat out or travel every now and then. You will realistically need to scale back to show the bank that you are responisble in your spending.
4. Reduce non-essential spending
Keep your social life as low-cost as possible. Your new restaurant of choice could be park picnics or visiting friends homes for a pot luck dinner.
Cut down inflated gym memberships by choosing to go for a run or cycle. Waterford Greenway is a beautiful option on our doorstep and it won’t cost you a penny. Why not visit one of Waterford’s stunning beaches for a see swim rather than a pool?
Take a break from clothes shopping, you will be able to fill your Frisby Homes bespoke wardrobes once you get the keys to your new home. When planning holidays make sure you can cover the full cost without dipping into your dedicated savings for the deposit.
5. Talk to a Mortgage or Financial Advisor
There are many independant mortgage or financial advisors available to point you in the right direction. Many Frisby Homes purchasers have spoken to Anita Cambie Financial when starting on this journey. Anita & her team give impartial advice about the best mortgage provider for you and your personal circumstances. The various mortgage providers in the market offer different rates & promotions, they also have varying requirements so not all providers would be suited to you depending on your circumstances. The best part… Anita Cambie Financial has a NO FEES policy! Contact Anita Cambie Financial to get further information.